In an August 30 article on WSJ.com (wall street journal's website), Nick Timiraos related that HUD (Department of Housing and Urban Development) Secretary Shaun Donovan "side-stepped" the question of whether Obama would implement the housing tax credit that again. Also Robert Gibbs, whitehouse press secratary stated that "it (the tax credit revival) is not high on the list."
This is unfortunate for first-time home buyers. My wife and I personally took advantage of the tax credit when we purchased our first home in 2009. We got the phase 2 $8,000.00 credit which we do not have to pay back. This is an excellent program for first-time buyers and essentially pays for itself (I won't get into that in this post).
With the tighter underwriting and lending standards, constrained funds supply and risk averse investors in this troubled economic environment the economy and the housing industry could use a follow-up shot in the arm. The ripple effect the housing industry has on the whole economy is obvious after the recent Great Recession.
I guess the moral of the post is that delaying to purchase a home because of the possibility of a tax credit revival is a gamble. Most signs point to no revival. For first time home buyers with a relatively stable job, working on your credit and saving cash for a down payment (the old fashion way) is probably going to the path to the "American Dream" of home ownership.
Here is a solid product for gaining knowledge about credit scores.
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